How to Lower Deductibles in Car Insurance (2024)

FAQs

How do I lower my car insurance deductible? ›

Yes, you can lower your car insurance deductible at any time by contacting your car insurance company and telling them what you would like your new deductible to be. Lowering your deductible will make your out-of-pocket costs cheaper if you need to file a claim, but it will also result in higher premiums.

If you're more likely to get into an accident, you won't want to pay out a higher deductible. However, if you're generally a safer driver, your car insurance premiums will be lower with a $1,000 deductible.

With regard to healthcare deductibles, always ask if it's possible to negotiate a payment plan. The healthcare provider cannot legally waive the deductible but they can allow you to pay it over time. The challenge comes in when a procedure involves multiple providers, such as with surgery.

You may be able to adjust your plan's deductible . Many health insurance companies allow you to keep the same health plan and increase or decrease your deductible based on your needs.

You may opt for a higher car insurance deductible because you're betting against having an accident, but if you've had accidents in the past and often drive on busier roads, you may be more likely to file a claim and pay a deductible.

Negotiate payment plans with healthcare providers: If you have a high deductible, it can be overwhelming to pay for medical services in a lump sum. Don't be afraid to negotiate payment plans with your healthcare providers. They often have options available to help spread out the costs over a longer period of time.

If you cannot pay the full deductible up front after an accident, some repair shops may work with you on a payment plan. If you cannot pay the whole deductible, some shops may not start the repairs right away. Depending on your policy, your insurance company could also refuse to pay until you have paid your portion.

Your deductible should be an amount you can comfortably cover in case you need to file a claim. Car insurance deductibles usually range from $100 to $2,000, with a $500 deductible being the most common.

1. Increase your deductible. Depending on your insurance provider, paying a higher deductible (the amount you pay out of pocket before your insurance coverage kicks in, in the event of an incident) is typically a quick and easy way you can decrease your auto insurance payments.

What actions can be taken to lower these insurance premiums? ›

Deductibles are what you pay before your insurance policy kicks in. By requesting higher deductibles, you can lower your costs substantially. For example, increasing your deductible from $200 to $500 could reduce your collision and comprehensive coverage cost by 15 to 30 percent.

In the event you have an individual health insurance plan, your qualifying healthcare payments go directly towards bringing down your deductible. Once you've reached the deductible, you start splitting costs according to the plan until you reach the out-of-pocket maximum.

If you're leasing or financing your car or living on a tight budget, a lower deductible can give you more peace of mind. If you have a clean driving record or live in a low-traffic city, getting a high deductible could save you more money in the long run.

WalletHub notes that you can save about 6 percent by choosing a $2000 deductible instead of a $1000 deductible, which may or may not make sense depending on the price of your policy. As Bankrate notes, you will not have to pay your deductible for a claim if another driver caused the accident.

If you increase your deductible, you'll pay less on a monthly basis for coverage because you will end up paying more out of pocket if you file a claim. Choosing your deductible is about balancing your budget and the amount of risk you can tolerate.